Slide 1: Earnings Conference Call – First Quarter 2014
Exhibit 99.2 The Mosaic Company Earnings Conference Call – First Quarter 2014 May 6, 2014 Jim Prokopanko, President and Chief Executive Officer Larry Stranghoener, Executive Vice President and Chief Financial Officer Laura Gagnon, Vice President Investor Relations
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the acquisition and assumption of certain related liabilities of the Florida phosp
Slide 3: Our Operating Environment
Our Operating Environment Logistics Phosphates Potash Rail constrained: Market prices up since Volumes: US & Canada Q4’13: Leveraged warehouse Resolution timing Strong demand positioning uncertain Global logistics constraints Shipment lag impacted production and margins Mississippi opens behind sche
Slide 4: First Quarter Financial Highlights
First Quarter Financial Highlights Net Sales 0 Operating Earnings Phosphates $733 $166 Potash $138 $1,254 $2.0 billion $267 million $0.54 diluted earnings per share $627 million in cash from operations 4
Slide 5: Strategic Accomplishments
Strategic Accomplishments Closed CF phosphate acquisition Announced purchase of ADM’s Brazil fertilizer business Continued to execute K3 expansion on time and on budget Committed to purchasing 12% of shares outstanding in total Announced and purchased 8.2 million Class A shares from select Cargill F
Slide 6: Financial Results Review
Financial Results Review
Slide 7: Capital and Balance Sheet Update
Capital and Balance Sheet Update Capital Allocation: 2 Year Summary* Total: Maintenance $8.7 Billion - $520M P - $730M K 16% - $125M Other Organic Growth - $270M P 38% - $760M K 15% - $245M Other Investment Commitments - $1B Ma’aden - $1.4B CF Phosphates acquisition 31% - $350M ADM Fertilizer acquis
Slide 8: Pro Forma Balance Sheet
Pro Forma Balance Sheet Mid 2014 Pro Forma Estimated Surplus $ 450 Cash(1)(2) Capital returns Expected beyond mid 2014 Adjusted Debt(2) $ 4,384 a function of: Cash flow generation Targeted Adjusted Available Debt / EBITDA(3) 1.5 2.0 investment opportunities Implied EBITDA(3) $2,923 $2,192 We believe
Slide 9: CF Integration Update
CF Integration Update Welcomed 700 new employees Q2 accounting impact: Near zero margin on acquired finished product On track to achieve previously stated 2015 targets: $40-$50 million of pre-tax synergies EBITDA accretion of $230-$240 million EBITDA is earnings before interest, taxes, depreciation
Slide 10: First Quarter Financials
First Quarter Financials Year over Year: Prices Down 29% in Potash Down 16% in Phosphates Volumes: Up 17% in Potash Up 1% in Phosphates Revenue: down 14% Gross Margin: down 36% SG&A: up 31% EPS: down 39% 10
Slide 11: Phosphates Segment Highlights
Phosphates Segment Highlights $ In millions, except DAP price Q1 2014 Q4 2013 Q1 2013 OPERATING EARNINGS BRIDGE $ IN MILLIONS Net sales $1,254 $1,556 $1,501 350 Gross Margin $207 $188 $253 300 Percent of net sales 17% 12% 17% 250 Operating earnings $138 $96 $185 200 150 Sales volumes 2.7 3.4 2.7 100
Slide 12: Potash Segment Highlights
Potash Segment Highlights $ In millions, except MOP price Q1 2014 Q4 2013 Q1 2013 OPERATING EARNINGS BRIDGE $ IN MILLIONS Net sales $733 $652 $825 350 Gross Margin $212 $134 $397 300 250 Percent of net sales 29% 21% 48% 200 Operating earnings $166 $88 $306 150 Sales volumes 2.4 1.9 2.0 100 Productio
Slide 13: Financial Guidance Summary
Financial Guidance Summary Phosphates Guidance – 2014 Q2 Sales volume 3.1 – 3.4 million tonnes Q2 DAP selling price $430- $460 per tonne Q2 Gross margin rate in the high teens Q2 Operating rate in the mid 80 percent range Potash Guidance – 2014 Q2 Sales volume 2.2 – 2.5 million tonnes Q2 MOP selling
Slide 14: Financial Guidance Summary
Financial Guidance Summary Corporate Guidance – 2014 Total SG&A - 2014 $400 - $425 million Capital Expenditures and $1.2 billion to $1.4 billion Equity Investments - 2014 Effective Tax Rate - 2014 Mid to high 20 percent range 14
Slide 15: Helping the World Grow the Food it Needs
Helping the World Grow the Food it Needs
Slide 16: Global Phosphate Shipments by Region
Global Phosphate Shipments by Region Feb Feb May May Million Tonnes Feb May Low High Low High DAP/MAP/TSP 2013E 2013E 2014F 2014F 2014F 2014F Comments Continued moderate growth - high analysis products capture China 21.9 21.5 22.0 22.4 22.0 22.2 the bulk of phosphate demand growth and continue to di
Slide 17: Global Potash Shipments by Region
Global Potash Shipments by Region Million Tonnes Feb Feb May May Muriate of Potash Feb May Low High Low High (KCl) 2013E 2013E 2014F 2014F 2014F 2014F Comments Net imports are projected to increase from 5.8 million tonnes China 11.0 11.0 11.6 12.0 11.7 11.9 in 2013 to 6.4 million tonnes in 2014. Pro
Slide 18: Raw Material Cost Detail
Raw Material Cost Detail Q1 2014 Percent Ammonia ($/MT) Realized in COGS $374 Average Purchase Price $432 Sulfur ($/LT) Realized in COGS $96 Average Purchase Price $117 Phosphate rock (used in production) ('000 metric tonnes) US mined rock 3,308 91% Purchased Miski Mayo rock 233 6% Other purchased r
Slide 19: Phosphate Raw Material Trends
Phosphate Raw Material Trends Ammonia Sulfur ($/tonne) ($/tonne) $800 $250 $700 $600 $200 $500 $150 $400 $300 $100 $200 $100 $50 $- Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 $- 2012 2012 2012 2013 2013 2013 2013 2014 2014F Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2013 2013 2013 2013 2014F 2014F 1 Realized Costs M
Slide 20: Earnings Sensitivity to Key Drivers
Earnings Sensitivity to Key Drivers(a) 2014 Q1 % Impact on 2014 Q1 Pre-Tax Change Margin % Segment EPS Impact Actual Impact Actual Margin Marketing MOP Price ($/tonne)(b) $267 $50 29% 15% $112 $0.20 Potash Volume 2.4 0.5 29% 10% $72 $0.13 (million tonnes) DAP Price ($/tonne) $414 $50 17% 9% $112 $0.
Slide 21: Pro Forma Balance Sheet Reconciliation
Pro Forma Balance Sheet Reconciliation Mid-Year Surplus Cash $ 450 Total Adjusted Debt $ 4,384 Q1'14 Cash Balance $ 2,491 Expected DebtIncrease $ 800 (1) (3) Cash flows for Q2 (EBITDA - CAPEX) $ 307 Maadeninvestment $ (200) (2) Remaining MAC trust share repurchase $ (773) Reserved for Future Cash Us